RJK Explorations has announced plans to amend 8,057,363 outstanding common share purchase warrants previously issued through a non-brokered private placement from May-June 2022. The proposed amendments include: extending the expiration date from May/June 2025 to May 20, 2027, and reducing the exercise price from $0.25 to $0.12 for 2,947,099 warrants. Of the total warrants, 5,916,000 are held by an insider, with only 805,736 eligible for exercise price amendment per TSX Venture Exchange policy. The amendments require Exchange approval and constitute a "related party transaction" but are exempt from certain requirements under MI 61-101 as they do not exceed 25% of the company's market capitalization.
RJK Explorations ha annunciato l'intenzione di modificare 8.057.363 warrant di acquisto di azioni ordinarie in circolazione, emessi in precedenza tramite un collocamento privato senza intermediari tra maggio e giugno 2022. Le modifiche proposte prevedono: l'estensione della data di scadenza da maggio/giugno 2025 al 20 maggio 2027 e la riduzione del prezzo di esercizio da 0,25$ a 0,12$ per 2.947.099 warrant. Dei warrant totali, 5.916.000 sono detenuti da un insider, mentre solo 805.736 sono eleggibili per la modifica del prezzo di esercizio secondo la politica della TSX Venture Exchange. Le modifiche richiedono l'approvazione dell'Exchange e costituiscono una "operazione con parti correlate", ma sono esenti da alcuni requisiti previsti dal MI 61-101 poiché non superano il 25% della capitalizzazione di mercato della società.
RJK Explorations ha anunciado planes para modificar 8.057.363 warrants de compra de acciones ordinarias pendientes, emitidos previamente mediante una colocación privada sin intermediarios entre mayo y junio de 2022. Las enmiendas propuestas incluyen: extender la fecha de vencimiento de mayo/junio de 2025 al 20 de mayo de 2027 y reducir el precio de ejercicio de 0,25$ a 0,12$ para 2.947.099 warrants. Del total de warrants, 5.916.000 están en manos de un insider, y solo 805.736 son elegibles para la modificación del precio de ejercicio según la política de TSX Venture Exchange. Las enmiendas requieren la aprobación de la Bolsa y constituyen una "transacción con partes relacionadas", pero están exentas de ciertos requisitos bajo MI 61-101 ya que no superan el 25% de la capitalización de mercado de la empresa.
RJK Explorations는 2022년 5월~6월 비중개인 사모 발행을 통해 이전에 발행된 8,057,363개의 미결제 보통주 매수 워런트의 수정 계획을 발표했습니다. 제안된 수정 사항에는 만료일을 2025년 5월/6월에서 2027년 5월 20일로 연장하고, 2,947,099개의 워런트에 대해 행사 가격을 0.25달러에서 0.12달러로 인하하는 내용이 포함됩니다. 전체 워런트 중 5,916,000개는 내부자가 보유하고 있으며, TSX 벤처 거래소 정책에 따라 행사 가격 수정 대상은 805,736개에 불과합니다. 이 수정 사항은 거래소 승인이 필요하며 "관련 당사자 거래"에 해당하지만, 회사 시가총액의 25%를 초과하지 않아 MI 61-101의 일부 요건에서 면제됩니다.
RJK Explorations a annoncé son intention de modifier 8 057 363 bons de souscription d’actions ordinaires en circulation, émis précédemment dans le cadre d’un placement privé sans courtier entre mai et juin 2022. Les modifications proposées comprennent : le report de la date d’expiration de mai/juin 2025 au 20 mai 2027 et la réduction du prix d’exercice de 0,25 $ à 0,12 $ pour 2 947 099 bons. Sur le total des bons, 5 916 000 sont détenus par un initié, et seulement 805 736 sont éligibles à la modification du prix d’exercice selon la politique de la TSX Venture Exchange. Ces modifications nécessitent l’approbation de la Bourse et constituent une « transaction entre parties liées », mais sont exemptées de certaines exigences en vertu du MI 61-101 car elles ne dépassent pas 25 % de la capitalisation boursière de la société.
RJK Explorations hat Pläne angekündigt, 8.057.363 ausstehende Stammaktien-Kauf-Warrants zu ändern, die zuvor im Rahmen einer nicht vermittelten Privatplatzierung von Mai bis Juni 2022 ausgegeben wurden. Die vorgeschlagenen Änderungen umfassen: die Verlängerung des Ablaufdatums von Mai/Juni 2025 auf den 20. Mai 2027 sowie die Senkung des Ausübungspreises von 0,25 $ auf 0,12 $ für 2.947.099 Warrants. Von den Gesamtwarrants werden 5.916.000 von einem Insider gehalten, wobei nur 805.736 gemäß der Richtlinie der TSX Venture Exchange für eine Änderung des Ausübungspreises infrage kommen. Die Änderungen bedürfen der Zustimmung der Börse und stellen eine "Transaktion mit verbundenen Parteien" dar, sind jedoch von bestimmten Anforderungen gemäß MI 61-101 ausgenommen, da sie 25 % der Marktkapitalisierung des Unternehmens nicht überschreiten.
Positive
Warrant term extension provides more time for potential exercise
Lower exercise price for eligible warrants could incentivize conversion
Negative
Warrant exercise price reduction indicates potential difficulty in attracting investment at current price levels
Significant insider warrant holdings (5,916,000 warrants) could lead to future dilution
Kirkland Lake, Ontario--(Newsfile Corp. - May 13, 2025) - RJK Explorations Ltd. (TSXV: RJX.A) ("RJK" or "the Company") announces that the Company intends to amend a total of 8,057,363 outstanding common share purchase warrants (the "Warrants") previously issued pursuant to the Company's non-brokered private placement that closed in two tranches on May 20, 2022 and June 15, 2022 (the "Private Placement").
The Warrants are currently exercisable at a price of $0.25 to purchase one common share in the capital of the Company for terms expiring on May 20, 2025 and June 15, 2025, respectively. The Company wishes to (i) amend all the outstanding Warrants to extend their term to May 20, 2027, and (ii) to amend 2,947,099 of the Warrants to reduce their exercise price from $0.25 to $0.12 (together, the "Warrant Amendments").
5,916,000 Warrants (the "Insider Warrants") are held by an insider of the Company, and pursuant to TSX Venture Exchange (the "Exchange") policy, only 805,736 of the Insider Warrants are eligible for exercise price amendment.
The amendment of the Warrants is subject to the prior approval of Exchange. Upon receipt of such approval, the Warrants will be deemed to be amended to adjust their term and their exercise price, accordingly.
The application of the Warrant Amendments to the Insider Warrants constitutes a "related party transaction" within MI 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), but are exempt from the MI 61 101 valuation and minority approval requirements for related party transactions in connection with the Offering under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the Related Parties, exceeds 25% of the Company's market capitalization (as determined under MI 61-101). The Company did not file a material change report containing all of the disclosure required by MI 61-101 more than 21 days before the effective date of the Warrant Amendments as the company does not consider the Warrant Amendments to constitute a material change.
The Company intends to issue an updating news release upon receipt, if any, of Warrant Amendment approval.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This news release includes certain forward-looking statements, which may include, but are not limited to, statements concerning the TSX Venture Exchange acceptance of the warrant extension. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "will", "anticipate", "believe", "plan", "estimate", "expect", "intend", "propose" and similar expressions. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in this news release. Factors that could cause actual results to differ materially from those anticipated in this news release include, but are not limited to, the Company not receiving TSX Venture Exchange acceptance of the proposed warrant extension and repricing. RJK assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by applicable law.
What changes is RJK Explorations (RJKAF) proposing to its warrants in May 2025?
RJK is proposing to extend the term of 8,057,363 warrants to May 20, 2027, and reduce the exercise price from $0.25 to $0.12 for 2,947,099 warrants, subject to TSX Venture Exchange approval.
How many insider warrants are affected by RJK's warrant amendments?
5,916,000 warrants are held by an insider, but only 805,736 of these insider warrants are eligible for the exercise price amendment per Exchange policy.
Why is RJK Explorations amending its warrants in 2025?
The company is extending warrant terms and reducing exercise prices to provide more time and incentive for warrant holders to exercise their warrants, potentially improving the company's ability to raise capital.
Does RJK's warrant amendment require shareholder approval?
The amendments are exempt from MI 61-101 minority approval requirements as the transaction value does not exceed 25% of the company's market capitalization, though TSX Venture Exchange approval is required.
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